Restaurant businessPrior to the current year, JJI concentrated juices were produced solely for use in thejuice bars. These juices are the base ingredients for JJIs smoothies, which aretrademarked as Smoothtreats. In June of 20X2, JJI decided to utilize the excesscapacity in its manufacturing plant by selling its concentrated juices to a North Americanchain of family restaurants. The restaurant chain, The Tasty Spoon, signed anagreement that granted it exclusive rights to some of the Smoothtreats recipes forpurposes of providing these drinks in its restaurants.Core 1 Week 7 Practice Case Just Juice Inc.3 / 3Appendix (continued)Potential accounting issuesThe terms of this supply agreement are as follows: JJI made five of its Smoothtreats recipes available to The Tasty Spoon. The TastySpoon is only permitted to use these recipes in the making of Smoothtreats using JJIconcentrated juice. This is so that JJI can control the quality of the inputs because allsmoothies are sold under its name. As well, this provision prevents The Tasty Spoonfrom taking the recipes and making its own smoothies. JJIs legal counsel spent a lotof time on this clause to ensure that the recipes could only be used in the mannerintended by JJI. Upon delivery of the Smoothtreats recipes, The Tasty Spoon paid an up-front nonrefundable fee of $250,000 which JJI recorded as revenue. The Tasty Spoon restaurants order JJI concentrated juices directly from JJIsmanufacturing plant. The first shipments were delivered in late August. The TastySpoon negotiated a general right of return because it was uncertain as to how muchproduct it would be able to sell. From date of shipment, The Tasty Spoon has threemonths to return the product. Payments are to be made on the 10th of each monthfor the juice used in the previous month. On the 10th of the month, The Tasty Spoonrestaurants notify JJI as to juice used and payment becomes due. The initial agreement covers the period from September 1, 20X2, to August 31,20X5. Upon expiry of the initial agreement, it can be renewed for an additional fiveyears upon agreement by both parties.Is there any other accounting issues except revenue recognition?